Shareholders of Seplat Petroleum Development Company Plc, has approved the final dividend of US$0.04 per share at its Annual General Meeting for the 2015 financial year. The dividend brings the total dividend payment to US$0.08 per share.
Commenting on the 2015 financial statement Chairman of the company ABC Orjiako noted that despite the obvious headwinds facing the sector they were able to make progress on all aspects of their strategic delivering.
He said their gas business achieved 185 percent year on year growth, with the Oben gas plant phase ii expansion underway with additional processing modules which will take gross processing capacity to an expected minimum level of 525 MMscfd.
Stressing that alongside significant increase in gas production, the positive financial impact of Seplat gas business was evident as revenue from gas sales increased to US$77 million.
The Chief Executive Officer Austin Avuru pointed out that in 2015 they delivered on what was in their control, by posting best in class reserve and production growth and taking their gas business across a transformational threshold with further expansion still to come.
He explained to shareholders that they acted quickly and decisively in response to the weak oil price environment, by adjusting their work programme and cost structures. In respect to the 2016 performance, Avuru added that the company full year production expectation has been impacted by the current shut in of the Forcados terminal.
But noted that they are much better positioned to withstand such interruptions than in prior years. “Our gas business takes additional importance by providing a continuous revenue stream that is de-linked from the oil price. Our enlarged portfolio offers us the scope for greater diversification.”
Avuru emphasised that their strong focus remains on protecting the business and managing value through effective cost reductions, optimising operations, deleveraging and strengthening the balance sheet. This will strategically position the company to take advantage of opportunities that will inevitably follow this current downturn.